Here's some interesting info most don't know. Yes a debit card can be treated like a regular credit card if a pin # can't be entered. What most don't know is the cost for a retail merchant is WAAAAY lower than if it was a regular card and not a debit card. Yes pin based transactions are super low and you only pay a transaction fee but a LOT of processors will sell you on that even if it's really not something that will benefit your business. If you have a really small average ticket, it makes no sense to take a pin based debit card because the cost can actually be higher than if you treat it like a regular card. However, merchants think that just paying a transaction fee instead of a percentage rate is the way to go, which is true as long as you have a high enough average ticket to make it worth it. Processors will use pin debit sales as a reason to sell you more equipment so don't fall for it.
So if you can't take a pin based debit, it's still all good. Example, cost on a regular visa for a swiped transaction is 1.6325% + .10 a trans. That is COST (in the US), not including the processors profit, no matter what processor you're talking about, for a basic swiped transaction. Now, if you're with a processor that participates in check card rebates, your cost on the same transaction if it's a debit card where there is NO pin# being entered, the cost is 1.1225% + $.15 a transaction. It's a HUGE difference between the two but the kicker is most processors will not charge you the lower rate even though they are getting charged the lower rate from Visa/MC, they keep the difference for their profits. The thing is that processors do not have to give you the lower rates for debit cards because it's completely elective for them to do so. I hoped that helped a little.
never gone's Content
There have been 2 items by never gone (Search limited from 16-June 23)